Recap of key highlights from the Federal Budget announcements.
Treasurer Josh Frydenberg addressed parliament and delivered the 20/21 Federal Budget in what has been the most challenging year for Australia since World War II.
But first the bad news…
How much is the nation’s deficit?
More than $213 billion in deficit – which refers to the difference between Government revenue and spend.
How much debt is the nation in?
Australia is almost $1 trillion in debt, with expectations Australians would be paying off the coronavirus bill into the 2030s.
WA Borders will continue to stand
Well, this is a bit good and bad.
The hard border stance has allowed Western Australia to get back to almost life as normal before COVID-19. However, with the growing pressure to ease borders and with cases dropping in in New South Wales and Victoria – impending ground swirl is happening within Federal government and with local punters here in Western Australia to open up the borders.
Despite the pressures that may be headed Mark McGowan’s way, the budget papers reveal that the Federal Government expects Western Australia’s border to still be up until April 1st, 2021 – six months from now and four months after the date set for all Australian states to ease their borders.
“It is assumed that state border restrictions currently in place are lifted by the end of 2020, except for Western Australia which is assumed to open from 1 April 2021,” the Budget read.
But the good news out of the budget.
Welcomed Tax Cuts
Despite significant deficit and growing debt the Federal government won’t be raising taxes, instead they will be cutting taxes to help Australians through these tough times and with further hope to continue to stimulate the economy as a result.
The Government will lower personal income taxes for 11.6 million individuals compared with 2017‑18 tax settings to put more money back into their pockets.
Middle and high income earners will see significant tax cuts.
Australians earning between $45,000 and $90,000 annually will receive a tax break equal to $20 a week.
And for workers earning $120,000 a year or more, the tax cut will be up to $70 a week until July next year.
Read more: Federal Budget Reveals Mammoth Tax Cuts
Tax Deductions for businesses
From 7.30pm 6 October 2020 to 30 June 2022, businesses with a turnover of under $5 billion will be able to fully write-off the cost of eligible depreciating assets purchased.
This means businesses will get a tax deduction in the first year of purchase of these eligible depreciating assets.
ie. a trucking business with a profit of $350,000 who purchased a new truck for $250,000 would only pay tax on $100,000.
Holiday in WA
If you haven’t been for a Wander Out Yonder already, then wit the potential border still standing well into 2021, now might be the perfect time to start researching your next Western Australia travel adventure.
Much like our State Government with their recent announcement of cheap flights to Western Australia’s north, the Federal Government is also backing in domestic tourism with Tourism Australia to receive $231.6 million to “ramp up” domestic marketing.
Tourism Minister Simon Birmingham said the industry was vital to the country’s long-term recovery.
“As we shift to the next phase of our tourism recovery plan, new Budget measures will further support the sector and jobs by stimulating domestic visitation to our tourism regions and encouraging domestic business travel,” he said.
This will mean you can expect to see more tourism campaigns promoting Australia to Australians.
The latest Federal Budget will also have a strong focus on generating jobs.
The Government’s $74 billion JobMaker Plan is a key element of the Government’s Economic Recovery Plan for Australia and more specifically the new $4 billion JobMaker Hiring Credit will provide businesses with an incentive to take on additional employees aged between 16 and 35 years old.
Wages for new hires between 16 and 35 years old who had accessed JobSeeker or Youth Allowance will be subsided by $200 a week, while wages for 30 to 46 year olds will be subsidised by $100 a week.
It is estimated around 450,000 positions for young Australians will be supported through the JobMaker Hiring Credit.
Scott Morrison assured older Australians that training and reskilling programs were one way they could benefit from the budget, and that those that had work would not be dumped for younger workers, because the subsidy would only apply to “new hires”.
Read more: Federal Budget: JobMake Hiring Credit
For further details on the Federal Budget visit budget.gov.au.